Posts Tagged ‘benefits’

Dying without a Will

A will is a document that says how you wish property to be divided after your death.

In Alberta, if you die without a will or if you leave property that is not disposed of by will, the Wills and Succession Act determines what will happen to your property.

 If you die leaving children but no spouse, then everything is divided equally among your children. If any of your children died before you, but left children (your grandchildren) who survive you, are entitled to share the portion of your estate which your child would have received if he or she was alive.

If you are married or in an adult interdependent partnership and you have children who are also the children of your surviving spouse or adult interdependent partner, your spouse or adult interdependent partner is entitled to receive your entire estate.

 If you are married or in an adult interdependent partnership and you have children who are not also the children or your surviving spouse or adult interdependent partner, your surviving spouse or adult interdependent partner will be entitled to receive either 50% of your estate or an amount set out in the Act at the same time of your death, whichever amount is greater. Your children are entitled to share the balance of your estate equally. If any of your children died before you, but left children (your grandchildren) who survive you, those grandchildren are entitled to share the portion of your estate which your child would have received if he or she was alive.

If you leave no spouse or children or descendants, your estate goes to your nearest kin, in the following order: to your parents in equal shares, or to your surviving parent; if both of your parents are dead, then to your brothers and sisters in equal shares. The children of deceased brother and sisters inherit their parent’s share. If you have no surviving nieces or nephews, then your estate would be left to your next of kin according to different degrees of blood relationships. For example, your estate would pass first to your grandparents. If your grandparents have died before you, your estate will be divided equally among your surviving aunts and uncles. If you do not have surviving aunts and uncles, your estate will be divided among your cousins. If you do not leave any traceable next of kin, your estate goes to the provincial government and is used for universities to provide funding for scholarships or fields of research.

The Wills and Succession Act does not consider the needs of each particular family and some unfair situations may result.

A surviving parent may go through needless inconvenience when the other parent dies without a will. For example, where part of the deceased’s estate is to go to the children and the children are under 18 years of age; their share may be held in trust for them by the Public Trustee of Alberta.

As a result, a parent or guardian with small children may only be allowed to use that money if he or she applies to the Public Trustee each time she needs money to buy something for the children. The Public Trustee invests the money held in trust, and charges an administrative fee for acting as trustee for the children.

When the surviving spouse is elderly and the children of the deceased are adults who are able to earn a living, it may be the case that the surviving spouse needs the inheritance more than the adult children do. However, without a will, the estate will not necessarily pass entirely to the surviving spouse. This problem could be avoided by making a will which would leave the entire estate to the surviving spouse.

If you do not have any traceable relatives, you probably still wish to decide what happens to your estate when you die. You may prefer to leave your estate to a charitable organization or a friend rather than to the provincial government. You can state your preference in a will. If you leave any portion of your estate to a charitable organization, your estate will receive a tax benefit as a result of the donation.

Alberta has additional legislation that affects what happens to your estate if you die without a will. For example, The Dower Act, which prevents a married person from selling, mortgaging, or willing away the homestead without the spouse’s consent, entitles the surviving spouse to the use of the homestead for the remainder of his or her life, subject to the interests of any mortgagee or other registered creditor. Under the Dower Act, a homestead is the land upon which there is a dwelling house occupied by the owner (that is the deceased spouse, prior to his or her death), as longs as there are no joint owners on title to the land. The surviving spouse is allowed to occupy the dwelling house during his or her lifetime, or can rent the land and receive the income. This is the case regardless of the terms of the will or the provisions of the Wills and Succession Act.

If you die without a will and the share going to your dependent family members under the Wills and Succession Act is not enough for their proper maintenance and support, your dependent family members may apply to the court for more money. The judge, in such cases may make changes as he or she sees fit. According to the Family Maintenance and Support provisions of the Wills and Succession Act, dependent family members include your spouse or adult interdependent partner, children under the age of 18, and children over the age of 18 who are unable to earn a living due to a mental or physical disability. These provisions also apply where a will is made but does not make adequate provision for dependent family members. If you leave a will, you can specifically address the individual needs of your spouse and minor or disabled children. You can also state your reasons for not leaving a larger portion of your estate to certain of your family members. For example, if you and your spouse have signed a pre-nuptial agreement in which you agree to keep your finances separate, you may wish to make reference to that agreement in your will.

In summary, if you die with a will in Alberta, there are laws that determine what happens to your estate. You should make a will if you want to decide what will happen to your estate when you die, rather than have the provincial legislation do it for you.

http://clg.ab.ca/programs-services/dial-a-law/dying-without-a-will/

 

Employment Insurance Benefits for Self-Employed People

Self-employed Canadians are able to voluntarily access Employment Insurance (EI) special benefits. There are five types of EI special benefits:

→ Maternity benefits (15 weeks maximum) available to mothers of a new born child. It covers the periods surrounding birth;

→ Parental / adoptive benefits (35 weeks maximum) available to adoptive, biological or otherwise legally recognized parents while they are caring for a newly adopted or newborn child. It may be taken by either parent or shared between them;

→ Sickness benefits (15 weeks maximum) which may be paid to a person who cannot work because of injury, sickness, or quarantine;

→ Compassionate care benefits (26 weeks maximum), that may be paid to persons who have to be away from work temporarily to provide support or care to a family member who is gravely ill with a significant risk of death. The benefits can be shared between different family members who applied and are eligible to receive them; and

→ Benefits for parents of critically ill children (35 week maximum): available to eligible parents who take leave of work to provide care or support to their critically ill or injured child. Either parent is eligible or the benefits can be shared.

You are eligible to access the EI special benefits if you:

→ Are a self-employed person or you work for a corporation but cannot access EI benefits because you control more than 40% of the corporation’s voting shares; and

→ Are a Canadian citizen or a permanent resident of Canada.

Self-employed Canadians are required to voluntary opt into the Program at least one year prior to claiming benefits. Premium payments begin in the tax year in which they enrolled in the EI Program. Register to participate in the EI program through “my service Canada account.”

Self-employed persons can opt out of the EI Program at the end of any tax year, provided they have never claimed any benefits. If a claim for benefits was made they have to continue to contribute to the EI Program on their self- employed earnings for as long as they are self-employed.

Self-employed Canadians that opt into the EI Program will pay the same EI premium as salaried employees (maximum of $858.22 in 2018). She or he will not be required to pay the employer’s portion of the EI premiums.

Here’s why the CRA wants to know what’s going on in your bedroom

The state of your marriage or your common-law status is the government’s business as well because of the tax advantages you might get from being married or, conversely, the deductions you might be able to keep by saying you’re still single.

Expanding income splitting for families, something seniors have been able to do with pensions since 2007, could bring the government into your bedroom like never before.

It’s not like the Canada Revenue Agency and the courts haven’t been there previously. Case law on the subject goes back as far as 1980, with one particular court decision often cited because it outlines key criteria for defining what constitutes a common-law or marital relationship.

As judges today wade through the murky waters of whether a couple are truly in a common-law relationship, they are guided by a 1980 court decision.

In a District Court hearing in Thunder Bay, Judge Stanley R. Kurisko set out seven factors that may indicate a couple is in a common-law relationship. His guidance was eventually endorsed by the Supreme Court of Canada.

SHELTER

Did the parties live under the same roof?

What were the sleeping arrangements?

Did anyone else occupy or share the available accommodation?

SEXUAL AND PERSONAL BEHAVIOUR

Did the parties have sexual relations? If not, why not?

Did they maintain an attitude of fidelity to each other?

What were their feelings toward each other?

Did they communicate on a personal level?

Did they eat their meals together?

What, if anything, did they do to assist each other with problems or during illness?

Did they buy gifts for each other on special occasions?

SERVICES

What was the conduct and habit of the parties in relation to:

Preparation of meals,

Washing and mending clothes,

Shopping,

Household maintenance,

Any other domestic services?

SOCIAL

Did they participate together or separately in neighbourhood and community activities?

What was the relationship and conduct of each of them towards members of their respective families and how did such families behave towards the parties?

SOCIETAL

What was the attitude and conduct of the community towards each of them and as a couple?

SUPPORT (ECONOMIC)

What were the financial arrangements between the parties regarding the provision of or contribution towards the necessities of life (food, clothing, shelter, recreation, etc.)?

What were the arrangements concerning the acquisition and ownership of property?

Was there any special financial arrangement between them which both agreed would be determinant of their overall relationship?

CHILDREN

What was the attitude and conduct of the parties concerning children?

http://business.financialpost.com/personal-finance/taxes/heres-why-the-cra-wants-to-know-whats-going-on-in-your-bedroom

http://business.financialpost.com/author/garrymarr

http://twitter.com/dustywallet

Nurse practitioners can now certify applications for the disability tax credit

Nurse practitioners can now certify applications for the disability tax credit

Nurse practitioners can now fill out and sign Form T2201, Disability Tax Credit Certificate making the application process  for the disability tax credit (DTC) easier and more accessible.

Through Budget 2017, the Government has made a change to recognize nurse practitioners as one of the medical practitioners who can certify Form T2201. With over 4,500 nurse practitioners across Canada who can certify patients for the DTC, this change is going to have a positive impact for Canadians living with a disability.

Individuals who want to apply for the DTC, but live in an area where nurse practitioners are the first point of contact, as for example, in Canada’s North, will benefit from this change.

What is the disability tax credit?

The disability tax credit is a non-refundable tax credit that helps persons with disabilities or their supporting family members reduce the amount of income tax they may have to pay.
Applying for the credit is a three step process:

  1. Fill out Part A of Form T2201, Disability Tax Credit Certificate
  2. Have your nurse practitioner fill out Part B
  3. Send form T2201 to the CRA

Being eligible for the DTC can open the door to other federal, provincial, or territorial programs designed to support those with disabilities or their families. These include the registered disability savings plan, the working income tax benefit disability supplement, and the child disability benefit.

Contact Us

Padgett Business Services

1511 10 Street SW Calgary, AB T2R 1E8
Phone: (403) 220-1570

Email: Padgett Calgary

Subscribe to our SMALL BIZ BUILDER Newsletter.
Yes Please!

Our Rating

Click for the BBB Business Review of this Accountants - Certified Public in Calgary AB

Follow us